But despite the sudden outbreak of peace few around the conflict zone seemed confident that the truce would last long after the collapse of previous ceasefire deals.
"I have trouble believing that the ceasefire will be respected for long. But even if it lasts a few days, then that isn't bad," said pensioner Andrei, 77, who lives in one of the worst affected areas of the city.
"That would maybe allow us to re-establish water, gas and electricity to our house after it was cut off since bombing in January."
"There are ten times more people at the market than normal," said cake-stall worker Irina, 55. "It is almost like it was before the war."
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Irina said she would dearly love to believe that the end of fighting had come and peace was here to stay but she feared that was too much to expect.
"We always have hope because you can't live without hope, but if you think about it there is little chance that this will last."
"We waited for the truce to start like you do when the clock ticks down to New Year," said Natalia, 50.
"But the people here have been so affected by the daily bombardments that they find it hard to believe that the situation can improve."
Underlining the fragility of the situation, an AFP reporter heard several mortars being fired and a brief burst of shooting from automatic weapons at around midday close to a Ukrainian frontline position on the edge of the city.
An elderly man and woman died after Grad missile fire hit the town of Popasna in Lugansk region some 20 minutes after a truce came into force at midnight local time, local Kiev-loyal governor Gennadiy Moskal said.
Some 25 kilometres from the flashpoint town of Debaltseve, where just a few hours before fierce battles had raged as rebel forces tried to surround Ukrainian troops, government soldiers were playing football and reading.